Test Bank for Focus on Personal Finance: 2024 Release by Jack Kapoor
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Course
Personal Finance
Institution
Personal Finance
Test Bank for Focus on Personal Finance: 2024 Release Evergreen 7e 7th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes and Melissa Hart. Full Chapters (Chap 1 to 14)test bank are included with answers with explanation.
1 Personal Financial Planning in Action
APPENDIX: Time Value of Mo...
Chap 01 2024 Release Kapoor
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Personal financial planning is the process of managing your money to achieve personal
economic satisfaction.
1) ______
⊚ true
⊚ false
2) A financial plan is an informal report that analyzes past financial decisions.
2) ______
⊚ true
⊚ false
3) A financial plan can only be created using a money management software package.
3) ______
⊚ true
⊚ false
4) Financial plans are only created by financial planners.
4) ______
⊚ true
⊚ false
5) The life situation of a household includes a combination of personal factors such as age,
income, household size, and personal beliefs.
5) ______
⊚ true
⊚ false
1
,6) The financial activities for a young, single person will probably be the same as those for an
older couple with no dependent children at home.
6) ______
⊚ true
⊚ false
7) Inflation is most harmful to people with incomes that are expected to increase.
7) ______
⊚ true
⊚ false
8) Inflation is a rise in the general level of prices and it reduces the buying power of the dollar.
8) ______
⊚ true
⊚ false
9) When prices are increasing at a rate of 4 percent, the cost of products will double in about 18
years.
9) ______
⊚ true
⊚ false
10) As borrowing by consumers and businesses increases, interest rates are likely to decrease.
10) ______
⊚ true
⊚ false
11) Planned spending through budgeting is part of the "investing" component of financial
planning activities.
11) ______
⊚ true
⊚ false
2
,12) Retirement planning includes thinking about your housing situation, recreational activities,
and possible volunteer or part-time work.
12) ______
⊚ true
⊚ false
13) Short-term goals are usually achieved within the next year or so.
13) ______
⊚ true
⊚ false
14) Intermediate goals are usually achieved within the next year or so.
14) ______
⊚ true
⊚ false
15) Purchasing an appliance is an example of a consumable-product goal.
15) ______
⊚ true
⊚ false
16) Purchasing a car is an example of a durable-product goal.
16) ______
⊚ true
⊚ false
, 18) Personal opportunity costs refer to resources, such as time, health, and energy that are given
up when a choice is made.
18) ______
⊚ true
⊚ false
19) Interest earned is calculated by multiplying the principal times the time value of money.
19) ______
⊚ true
⊚ false
20) Risks associated with most financial decisions are easy to identify and evaluate.
20) ______
⊚ true
⊚ false
21) $500 on deposit at 6 percent for 6 months would earn $20.
21) ______
⊚ true
⊚ false
22) Three methods are commonly used to calculate time value of money.
22) ______
⊚ true
⊚ false
23) There are only three possible courses of action when developing alternatives for decision
making.
23) ______
⊚ true
⊚ false
4
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